CPC Resources, Inc. and Banana Kelly, joined by New York City Department of Housing Preservation and Development (HPD) Commissioner Shaun Donovan and New York City Housing Development Corporation (HDC) President Emily Youssouf, broke ground today on a project to develop 58 low-income rental apartments and 5,200 square feet of ground floor commercial space at 830 Fox Street in the Longwood neighborhood of the South Bronx.
Using City subsidies from HPD and HDC, the property is being developed by CPC Resources, the for-profit development arm of The Community Preservation Corporation, in a joint venture with Banana Kelly Community Improvement Association, a local Bronx non-profit organization. Part of the development site consists of City-owned land, one of the last of the City-owned properties taken through tax foreclosure, which was sold to CPC Resources for a nominal fee.
Michael Lappin, president and CEO of the Community Preservation Corporation, said, “Fox Street is a perfect example of CPC Resources’ mission of developing affordable housing and simultaneously increasing the development capacity of local non-profit developers through joint ventures. This site is a parcel of land that has been abandoned for at least the past 20 years. Now it’s becoming new, affordable housing for neighborhood families.”
When completed in spring 2008, the new six-story building will contain 18 one-bedrooms, 39 two-bedrooms, plus a superintendent’s unit. All of the apartments will be made available to families earning no more than 60% of the New York City Area Median Income. (Under income guidelines, an individual could earn no more than $29,760 and a family of four no more than $42,540, at today’s figures, to be eligible to live in the apartments.) Thirty percent of the units will be set aside for formerly homeless families. Rents are expected to range from $590 for a one-bedroom apartment to $870 for a two-bedroom. The new development will also contain 5,200 square feet of ground floor commercial space. The development will provide much needed affordable housing and contribute toward the revitalization of the neighborhood by replacing an abandoned two-story building and a vacant City-owned lot with new housing and commercial space.
The project is another sign of the continued revitalization of the Longwood neighborhood and the South Bronx. Prior to the demolition of the building in August, the site remained vacant and abandoned for over 20 years.
The total development cost is approximately $14 million. The development is being financed using $10.7 million of HDC’s tax-exempt bonds and accompanying subsidies available through the City’s Low-income Affordable Housing Marketplace Program, known as LAMP, and federal low income housing credits. The development is also receiving a $1.7 million subsidy through HPD’s Mixed Income Rental Program (MIRP). CPC Resources is lending its broad expertise in affordable housing development and will oversee all aspects of the development and construction of the project until the apartments are fully leased. During construction, the bonds are backed by a letter of credit from JPMorgan Chase. The tax credit equity is syndicated through WNC & Associates, Inc.
“The City and its partners are creating more affordable housing in the South Bronx to ensure that the borough’s residents benefit from the area’s current revitalization,” said HPD Commissioner Shaun Donovan. “As this development begins construction, we continue to make progress with the Mayor’s New Housing Marketplace Plan. The Plan is the largest affordable housing initiative in the nation’s history and will build and preserve 165,000 affordable units over ten years, enough housing for the entire population of Atlanta.”
Emily A. Youssouf, president of the Housing Development Corporation, said, “Today represents another great milestone for the revitalization of the South Bronx. As concerns about affordable housing continue to mount across the city, HDC is pleased to respond by issuing record amounts of financing for affordable housing throughout New York City.”
Harry DeRienzo, president of Banana Kelly, said, “When the new board of directors took over Banana Kelly in November of 2002, we had our work cut out for us. And with the help of many of those here today, particularly HPD and CPC, we are getting the job done. But, given the enormous challenges we had at that time, we would not have been able to start a new project were it not for having found a partner in development such as CPC Resources. Working together, we continue the resurgence of Banana Kelly and the ongoing development of this community.”
CPC Resources, Inc. is the for-profit entity of The Community Preservation Corporation (CPC), a not-for-profit mortgage lender that finances multi-family housing throughout New York and New Jersey. Since its founding in 1974, CPC has invested more than $5 billion in more than 120,000 units of housing in New York and New Jersey.
The New York City Department of Housing Preservation and Development's (HPD) mission is to promote quality housing and viable neighborhoods for New Yorkers. The department is the nation's largest municipal housing development agency and is implementing Mayor Bloomberg's New Housing Marketplace Plan to build and preserve 165,000 units of affordable housing over ten years. The New Housing Marketplace Plan is the largest municipal affordable housing effort in the nation's history. HPD also encourages the preservation of affordable housing through education, outreach, loan programs and enforcement of housing quality standards.
The New York City Housing Development Corporation (HDC) is the nation’s number one issuer of bonds for multi-family affordable housing. Established as a public benefit corporation by the State of New York in 1971, HDC is responsible for financing the creation and preservation of affordable housing in New York City. The financing provided by HDC is in the form of low-cost mortgages made through the sale of tax-exempt and taxable bonds. These mortgages are provided to developers for the construction and preservation of affordable housing. In addition, through our own corporate reserves, HDC provides second mortgages from its own corporate reserves usually at a 1% interest rate.
Banana Kelley Community Improvement Association is a community development corporation founded and governed by community residents to build and manage safe, well-maintained, affordable housing; create and operate programs that help residents achieve and sustain self –sufficiency and develop new initiates in response to the needs identified by the community.
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